Mortgage Qualifier

The first step in buying a house is determining your budget. This calculator steps you through the process of finding out how much you can borrow. Fill in the entry fields and click on the 'View Report' button to see a complete amortization schedule of your mortgage payments.

An annual income of ANNUAL_INCOME may qualify you for LOAN_AMOUNT loan.

Using your input values, an annual income of ANNUAL_INCOME should enable you to carry a LENGTH_OF_LOAN-year mortgage at INTEREST_RATE in the amount of LOAN_AMOUNT. With a TOTAL_FOR_DOWNPAYMENT down payment, the total purchase price would be PURCHASE_PRICE. Total closing costs for this loan are estimated at TOTAL_CLOSING_COSTS. **GRAPH**
Monthly Payment TOTAL_MONTHLY_PAYMENT (PITI)
Principal and interestMONTHLY_PI
PMIMONTHLY_PMI
TaxesMONTHLY_TAXES
InsuranceMONTHLY_INSURANCE

To avoid PMI payments a PERCENT_20_DOWN_AMT down payment is required. This equals PMI_PERCENT of your home's purchase price. The total amount of cash required for a PMI_PERCENT down payment plus closing costs would be CLOSING_COSTS_PLUS_20.

Qualify Calculation

Your qualifying payment of QLFY_AMOUNT per month is calculated by taking the lower of these two calculations:

  1. Monthly Income X LOW_DEBT_PITI_RATE = monthly PITI
    MONTHLY_INCOME X LOW_DEBT_PITI_RATE = QLFY_PITI_ONLY

  2. Monthly Income X HIGH_DEBT_PITI_RATE - Other debt payments = monthly PITI
    MONTHLY_INCOME X HIGH_DEBT_PITI_RATE - TOTAL_LOAN_PAYMENTS = QLFY_PITI_DEBT
Mortgage Summary
Loan amountLOAN_AMOUNT
Annual incomeANNUAL_INCOME
Purchase pricePURCHASE_PRICE
Monthly payment (PI)MONTHLY_PI
TermLENGTH_OF_LOAN years
Interest rateINTEREST_RATE
Monthly Debt Payments
Monthly car payment(s)MONTHLY_CAR_PAYMENTS
Credit card payment(s)CREDIT_CARD_PAYMENTS
Other loan paymentsOTHER_LOAN_PAYMENTS
Total monthly debt paymentsTOTAL_LOAN_PAYMENTS

Closing Costs

**GRAPH**
Down Payment and Closing Costs
Cash on handDOWNPAYMENT_CLOSING_CASH
Down paymentTOTAL_FOR_DOWNPAYMENT
Loan origination feeLOAN_ORIGINATION_AMT
Fee for points paidPOINTS_PAID_AMT
Other closing costsOTHER_CLOSING_COSTS
Total closing costsTOTAL_CLOSING_COSTS_DP
Remaining cashREMAINING_CASH

Total Payments

**GRAPH**
Total Principal and Interest Payments
Total principal and interest paymentsTOTAL_OF_PAYMENTS
Total interestINTEREST_PAID

Payment schedule

**REPEATING GROUP**

Mortgage Qualifier Definitions

Annual income
Your annual income before taxes. For joint applicants this is your total combined annual income before taxes.
Purchase price
The price of the home you wish to purchase. This is the actual price you'll pay, not including any closing costs.
Total monthly payment
Total monthly payment that you can qualify for. This is the total of principal, interest, taxes and insurance paid each month, often called PITI.
Term in years
The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.
Interest rate
The current annual interest rate you can receive on your mortgage.
Property tax rate
Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes.
Home insurance rate
Your home owner's insurance rate. 0.5% for a $100,000 home equals $500 per year for homeowner's insurance.
Show schedule by month
Select to show the payment schedule by month or year when you press the 'View Report' button.
Cash on hand
Cash you have for the down payment and all closing costs.
Loan origination rate
The percentage the lending institution charges for its origination fee. 1% for a $100,000 home equals $1,000.
Number of points paid
The total number of points paid to reduce the interest rate of your mortgage. Each point costs 1% of your mortgage balance.
Other closing costs
Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other miscellaneous fees paid.
Limit down payment
Limit your down payment to percentage required to eliminate the need for PMI payments. Even if you have more cash on hand than required for closing costs, checking this box will limit your down payment to the minimum amount required to forego PMI.
Monthly car payment(s)
Total monthly payment for your car loan(s).
Credit card payments
Total monthly minimum payments for your credit cards.
Other loan payments
Any other installment loan payments, such as student loans or unsecured loans.
Total closing costs
Total upfront costs to close your loan. This is the total of your loan origination fee, points paid and other closing costs.
Monthly PMI payment
Monthly cost of Principal Mortgage Insurance (PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year. Monthly PMI is calculated by multiplying your starting loan balance by this percent and dividing by 12. When the equity in your home exceeds the percentage required for PMI, your PMI payment drops to zero. Please note that this is only an estimate of your actual PMI. The amount you may be required to pay may be higher or lower than our estimate.
Monthly PI payment
Monthly principal and interest payment.
Total for down payment
Total funds remaining, after closing costs, for down payment.
Total annual income debt percentage
Not shown. This is the percentage of your annual income your financial institution allows you to use for debt installment payments. This includes car payments, credit card payments, other loan payments and your principal, interest, taxes and insurance payment for your home. The default rate is 36%.
PITI annual income percentage
Not shown. This is the percentage of your annual income your financial institution allows you to use for your principal, interest, taxes and insurance payment for your home. The default rate is 28%.


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